The number of public enterprises listed for privatization in the current year (March 2018-19) has doubled compared to the last year. “All public entities privatized since last year have been ceded to the “real” private sector”, says Jafar Sobhani, an advisor to IPO
Iran Privatization Organization has presented a number of incentives to energize and reward the private sector in taking over state-run enterprises and assets, an advisor to the organization said.
“For example, the enterprises may be sold on installment. Interest rate charged for installment credit will be 14%, if an enterprise is transferred to companies affiliated to the quasi-state sector while it will be 3% if it is handed over to the ‘real’ private sector. Furthermore, the period of time until payments are made in full is extendable for the private sector,” Jafar Sobhani also told SENA.
On the transition of public companies to private owners in recent years, Sobhani noted that all public entities privatized since last year have been ceded to the “real” private sector and not a single rial of the shares of public organizations has been transferred to quasi-state bodies.
One of the main hurdles in the way of “real” privatization in Iran was the emergence of semi-private companies during the flawed privatization process in the not-too-distant past.